Legal & General

Legal & General

April 29, 2013 04:30 ET

More People Can Qualify for Extra Annuity Income for Life Says Legal & General

Enhanced annuity rates and income is available based on five common lifestyle health risks

LONDON, UNITED KINGDOM--(Marketwired - April 29, 2013) - Recent research suggests that customer awareness of pension annuities in the UK is continuing to grow. More people are aware that a pension annuity converts their pension fund savings into an income for life, more people are aware of their right to shop around for the best annuity rates and more people know that they could qualify for extra income for life based on their health issues.

Many are still unaware however, that they could qualify for extra income from their annuity without having suffered from a serious medical condition. Extra income is also available for lifestyle health risks like Smoking, weight, high blood pressure, high cholesterol and diet controlled Type 2 diabetes. As Tim Gosden, Head of Strategy for Individual Annuities at Legal & General explains, this means that more people could qualify for 'enhanced' annuity rates and income than ever before.

"The lifestyle health risks that could qualify for Legal & General's Annuity Plus rates are very common in the UK:

  • Two thirds of adults have cholesterol levels that are higher than recommended.
  • 6 out of every 10 adults are either overweight or obese, with 1 in 4 considered obese.
  • A third of people are thought to have high blood pressure, rising to 1 in 2 of over 65s.
  • One fifth of adults smoke cigarettes (10 million people). A further fifth are ex-smokers.
  • One in 20 people (2.9 million) have been diagnosed with Diabetes, 90% have Type 2.

Association of British Insurers (ABI) figures published in 2012 show that under 20% of annuities sold in 2011 were enhanced rate annuities, where extra income was provided based on the individual's health. Whilst this represents a 5% increase from 2010, many annuity customers are continuing to miss out on extra income as a result of not shopping around for the best offer."

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